Uber shares fell 5% on Tuesday even after the ride-hailing company beat Wall Street’s third-quarter revenue expectations. Earnings per share: $3.11. It was not immediately clear if that was comparable to the 68 cents expected by LSEG analysts. Revenue: $13.47 billion vs. $13.28 billion expected by LSEG
“This was our strongest growth since the end of 2023 and the largest trip volume increase in Uber’s history outside the post-Covid rebound,” said CEO Dara Khosrowshahi in prepared remarks. Revenue jumped 20% from $11.2 billion in the year-ago period. Gross bookings increased 21% to $49.74 billion and surpassed the $48.95 billion expected by StreetAccount.
Net income nearly tripled to $6.6 billion, or $3.11 per share, from $2.6 billion, or $1.20 per share, in the year-ago period. Adjusted earnings before interest, taxes, depreciation and amortization rose 33% to about $2.26 billion and was roughly in line with StreetAccount’s estimate. Uber said its net income included a $4.9 billion benefit from a tax valuation release and a $1.5 billion net pretax benefit from reevaluations of equity investments.
For the fourth quarter, Uber forecast gross bookings between $52.25 billion and $53.75 billion, versus a StreetAccount estimate of $52.10 billion. The company expects adjusted EBITDA to range between $2.41 billion and $2.51 billion, versus $2.47 billion expected by StreetAccount. Khosrowshahi said the company’s focus on innovation and affordability drove strong trips and gross bookings for the period.
Uber’s monthly active platform consumers increased 17% to 189 million. The company said it logged 3.5 billion trips during the quarter, up 22% from a year ago. Khosrowshahi said the company is also harnessing artificial intelligence to build more solutions for its drivers and couriers, and working with large language model creators such as OpenAI. He said he expects Uber’s ongoing growth to come from internal innovations and occasional acquisitions.
Here’s how the company’s key business segments performed:
Mobility (gross bookings): $25.11 billion, up 20% year over year
Delivery (gross bookings): $23.32 billion, up 25% year over year
Mobility segment revenue rose to $7.68 billion, slightly ahead of a StreetAccount estimate of $7.63 billion. Uber’s delivery business reported revenue of $4.48 billion, which topped the $4.31 billion projected by StreetAccount.
